3 Steps to Cope Up with the Stress Due to Your Unpaid Loans [Avoid Being Maltreated by a Collector]

Here on Self-Help, I am not just promoting these sprouting quick cash loans companies here in the Philippines, but, I am giving you a fair warning about the consequences of availing these quick cash loan offers.

Yesterday night, I found a picture of a woman on Pixabay.com, this drawing depicts a woman behind prison bars.

Being in debt is actually like being in prison, especially if payables are not manageable any longer. I am telling you this because this is my experience first hand.

Peace is not present if loan collectors are calling you any moment of the day — pressuring you to promise to pay on a given schedule. Are you in a situation, as well?

If you are stressed right now, I definitely can imagine that. That’s not easy.

It is obvious that most of us Filipinos are in crisis. I don’t need to prove that — the status quo is visible.

Inflation is rising, and the prices of the basic commodities are rising, as well. Your hard earned money for 15 days, to be honest, can’t feed your stomach within 15 days — agree or disagree?

You’ll find a way to feed your family.

Lending companies are seeing this! That’s why if you go to Facebook and you’ll see quick cash loan offers! Online loan offers here in the Philippines is everywhere — go to Google and you’ll see.

So, what are we supposed to do in this trying times?

Here are 3 working steps that will unstress yourself with the overwhelming thoughts of settling your overdue loans

Step One: Communicate with the lending company, communication is key

If the due date is approaching, try to see if it is possible to settle your obligation — if not — email or call the lending company.

It is a good move to initiate the action — do not wait for an agent to follow-up your payment.

Build a relationship with that quick cash loan provider. Let them know that you are thinking about your obligation with them.

And if you are not sure that you cannot settle on time, prior to the due date, contact them and kindly ask for an extension.

Some agents are not polite for sure, but if you try to explain your side, they are still humans — and they can understand your situation.

Indeed, communication is key!

Loan collectors will inform your contacts about your unpaid loan!

(Not all collectors are like these though, based on my personal experience, Tala’s collection department is well-trained about the proper etiquette in calling customers… did you experience the same?)

There were many Pinoy that are already victims of this scheme. Loan collectors were sending text messages to their contacts and informed them that this person has an unpaid loan with them and settlement is a must.

The problem is, we have given quick cash loan companies the permission to view our contacts during the installation process of the app!

You know what, if this lending company offers you a way to apply for a loan via their website — do it. Do not opt for the mobile app.

Just like me, I have applied for my first loan on CashWagon using their website — I did not download the app… so, they do not have my contact in their system — except the contacts that I have provided on the application form.

Remember, they require you to have a bank account, if not, you can’t apply. But, if opening a bank account is your problem — I got you a fix. Today, if you have 1 valid ID and 500 Pesos, you can open a bank account with RCBC savings.

So again, be wise! Don’t easily fall into their scheme. If you can apply on their website, choose that option.

Otherwise, if you are using the app, and the app tells you that connecting your Facebook account can help you get a fast approval — if that’s just an optional step — do not proceed. You got plenty of contacts in your messenger for sure. By authorizing them access, they can already see your list of friends, etc.

For example, when I have applied for a quick cash loan with LoanIt, there is an optional step that could help a fast approval of my application: connecting my Facebook account — but I completely ignore that.

How to contact them?

First thing, head over to their website or app, and try looking for a number or email address.

I’d recommend you have to do both: text them, call them and email them.

So there’s no fault in your part, you’ve done your best to get in touch.

And do it in advance! Do not wait for your due date to pass.

In your phone calls, text messages or emails:

Be nice to them, be polite even if they are not. We have the notion that customer is always right, but this time, even if the agent is not nice to you, be nice to them… it is YOU who is asking a favor.

Write a good text message, do not use jejemon.

Construct a good email, if possible, make it formal.

By doing this, they will know that you are a decent person. Decent persons know how to stick with their words and obligations, right?

Therefore, loan agents/collectors have no reason for texting your contacts!

Most of the times, they will resort to harassing you or making you embarrassed with your contacts when you try to avoid them: when you try to cancel phone calls, etc.

Step Two: Know your rights

If you know your rights, no one can easily bully or harass you.

It is sad to know that there are people who do not understand the situation and start bullying you for that matter.

However, knowing your rights as a citizen of the Republic of the Philippines is a weapon!

Even if you are indebted to somebody doesn’t mean you are less of a person.

So now, know your rights! They said Pinoys is not keen on reading, change that habit. Read so you know things that are beneficial to you!

A. How if a loan collector is telling you-you’ll be charged with estafa?

Will your world turns upside down?

Written on Article III, Bill of Rights, Section 20 of the 1987 Constitution: No person shall be imprisoned for debt or non-payment of a poll tax.

B. How if a collection officer is maltreating you?

Bangko Sentral ng Pilipinas (BSP) Circular No. 454 – Series of 2004

If you are being harassed or maltreated, the Circular No.454 will protect you.

The following practices are prohibited by the existing regulations of the BSP:

(The list are not reworded, and appear as written on the Circular.)

The use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person;

The use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws;

Disclosure of the names of credit cardholders who allegedly refuse to pay debts;

Threat to take any action that cannot legally be taken;

Communicating or threat to communicate to any person credit information which is known to be false, including failure to communicate that a debt is being disputed;

Any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a cardholder; and

Making contact at unreasonable/inconvenient times or hours which shall be defined as contact before 6:00 A.M. or after 10:00 P.M., unless the account is past due for more than sixty (60) days or the cardholder has given express permission or said times are the only reasonable or convenient opportunities for contact.

D. How if a lending company charges you for something that was not disclosed to you prior to the consummation of the transaction?

Consummation means being finalized. So, if a lender is charging you some additional money that is not stated clearly before the transaction is being finalized — that is a violation of the Truth in Lending Act.

For example, the Social Security System (SSS) clearly adheres with the R.A. 3765. When you are going to apply with them, they will print out a disclosure about your loan proceeds, including the amortization schedule and any fee that may apply.

Step Three: Look for an avenue to make extra money

If you know that your salary is not enough, you have to find a way to make extra money. (I am mostly talking about employed individuals here, but this may apply to self-employed, as well.)

Actually, the latest inventions of technology paved a way for Filipinos to make extra money at home. Look for online jobs — during your free hours.

If you are a stay-at-home Mom, you can support your husband this way.

What to look for? It depends on your skills and the things you want to learn.

Things to avoid: As much as possible, do not grab a quick money scheme on Facebook, especially if it asked you to put some amount of money to get started. Guys, I’ve been here on the internet for more than a decade, I knew these tactics.

These people make money from you, you get some return, but overall, you are just wasting your time because this scheme will NOT last.

Why not hon your skills right now and build something that will profit in the long term?

Remember: Jobs that require skills and dedication (hard work) are jobs that are high paying and jobs that are lasting.

On Facebook, there are a lot of Filipinos that are enticed of some quick money ideas — my best advice is to completely avoid them.

Do the money making slowly but surely.

There is NO such thing like invest, sit, make money while you sleep.

Therefore, if you have unpaid loans right now, make sure you can generate some extra cash. If your main income is not enough for your basic needs — how could you allocate money to settle your payables?

Just like the picture above, settling a debt with another debt will just put yourself into a worse situation.

Okay, here are a few legit sites you want to check:

Academia-Research.com — if you have a good command of English language, check this site. The pay is decent. But in order to be accepted, you have to pass a writing exam. If they have not changed it, you’ll be writing an essay. If you passed the test, you can start checking for orders. You have the complete freedom to accept what order to work on (but once accepted, you have the obligation to finish it on time). Your clients will be students around the world who wants their essay written or re-written. Payment will be sent on PayPal. Link to Academia.

Fiverr.com — this is a legit marketplace and I’ve made over a thousand dollars here. I recommend checking this out, there’s plenty of things you can sell here depending on your skills or passion (there is always a room for newcomers). You can do graphics, writing, voice over, and more. Your earnings can be withdrawn through PayPal. Link to Fiverr.

Humanatic.com (link) — you need a good pair of headset, a good internet connection, and a nice working gadget. You will be reviewing calls here, mostly English calls. This is legit — my wife and I had been paid here. You’ll be signing up with your verified PayPal Account. Sign up with PayPal and verify it by linking your bank, visa powered debit card or credit card. Open a bank account today with just 1 valid ID and 500 pesos initial deposit.

Zwerl (A fairly new company, also known as Sphere or Heysphere) — If you have a good command of English, and are fun of advising people, or answering their questions, you can sign up as an Expert on Zwerl. I am new here so I am not paid yet, but there are several people who are here already for a quite some time and they enjoy being experts. You can work on your mobile phone, but I preferred working either on my desktop pc or laptop. Link to Zwerl, NOT a referral link.

UpWork – a hub for freelancers, a fairly competitive platform. UpWork is formerly known as oDesk. I was a member of oDesk, but I did not survive, mainly because I was young back then and I easily surrendered. This could be your door to finding good paying clients.

CryptoCurrency trading is hot, but I am not sure if it is a good solution. Crypto trading is just like gambling. I have tried that on Coins.ph, I had invested 5,000 Pesos, but after more than a week, I have pulled out my investment, and it amounted less than 5k.

Blogging is a good idea if you want to build a passive income, but you cannot rely on make money blogging if you are just starting. Basically, you have to wait for a year or more to start monetizing your blog. Monetizing a blog doesn’t mean you are already making money… but anyone who is willing to blog — I can help.

In my next writeups, I will be writing some detailed guide on how to start a good looking blog on Blogger and WordPress. If you are interested, stay tuned as I am planning to give away some premium themes for you to start with.

To sum up, this article is a long read, however, this is a way to unstress yourself right now. Unpaid loans or overdue payables can be so stressful — especially if loan collectors are mean to you.

I’ve been there, that’s why I have said a lot!

But if you will consider the 3 steps outlined above, you’ll be okay. It’s not a quick solution though, but if you are willing to work it out — you’ll wake up the next day without many wrinkles.

In a few lines, these are the steps summarized as follows:

Communicate with the lending company or collecting agents prior to your due date – ask them for an extension.

Know your rights so you will know if the lending company or the loan collectors are already crossing the line.

Find a way to make extra money because settling a debt with another debt can make things worse.

Here on Self-Help, this is our passion, to keep you informed, however, we cannot guarantee you the accuracy of our content. This information is provided as-is, we are only an ordinary person like you — please check our disclaimer here.

Prime Aque is the back-end guy of Self-Help. He is a blogger and WordPress front-end designer. Importantly, he is a husband and a father of three wonderful kids. His firstborn are twin girls. He loves writing and sharing.

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